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tv   Worldwide Exchange  CNBC  May 18, 2015 4:00am-6:01am EDT

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>> a very warm welcome to "worldwide exchange." >> good morning, everyone. here are your headlines around the world. >> bhp makes a u-turn after its worst day in 2008 in sydney. hong kong gets set for its biggest ipo of the year as huatai has a share offering worth $5 billion. oil extends a 9-week gain
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despite increased tensions in the middle east. isis takes full control of the iraqi city ramadi while saudi resumes strikes. back to monday morning once again. lots to talk about. we've got some interesting data out of china as well as a big guest coming up on that and lots more u.s. data last week. it was disappointing. >> it doesn't matter though. >> i think there's a big factor as well in what we've seen in equity markets last week which is in general we feel we've been in a riskier mode. that said the u.s. dollar has been losing ground.
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that's allowing u.s. equities to out perform last week and hit new highs, whereas the euro has rebounded that has meant european markets have rebounded more. >> this weakness that we're seeing in the u.s. dollar is being welcomed by those international companies that make most of their revenue outside of u.s. the question is how long will this continue especially if the forecast is for data to improve to the up side. that keeps the dollar trend -- the dla bull trend intact. >> let's focus to one of the biggest individual movers already, in asian trade and london trade. bhp shares are -- /* -- before bouncing back in today's trade. south 32 shares fell over 3% in
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the first day of trade. >> reporter: it was a disappointing day for the bhp spin-off south 32 which made its share market debut in australia. hitting the boards at $2.13 a share but falling below that level through the trading day. it was set to 2 australian dollars a share but coming in at the lower end of that range. asked if the company was disappointed by the performance of the shares on the first day of trade, the ceo said it's not something he's focused on and he's not disappointed by it. the listing gives the company a market value of $11.3 australian and it makes it the third biggest minor. lots of talk in the lead-up to
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this float. just how much the company would be worth when bhp initially announced these demerger plans, speculation that the company could be worth as much as $15 billion australian. as commodity prices fell it was scaled back. some as low as 7 or 8 bill dollars. at the end of the day, the company coming in the middle of that range, about $11 billion australians but a disappointing debut. an interesting day so far for bhp so far. let's talk more about markets in general. joining us now, thank you very much for joining us. let's touch on this broader trend that we've seen in the last couple of months across all of the world but particularly in europe and that spike in bond yields is that
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just an unwind of the european qe trade? >> i think it's an unwind of a situation where bond yields went far too low, even considering the european qe. i think it's a huge story, it's the biggest story in my view of 2015 because people have still not quite their odds around just how big this operation is. in relation to the european bond markets, the ecb is buying two and a half times the net wans of europe bonds. i think the qe trade is a genuine force in the markets. despite that everything can go too far and three weeks ago, german bonds were yielding negative interest rates right out at 6 or 7 years and that was ridiculous, even considering the enormous purchases the ecb is going to take.
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in my view it's not so much a spike on the up side, it was reversal of a spike on the down side. >> it's not based on the fact that people think that the qe is going to end earlier than expected, it's just the trades have gone too far. >> some people say the problem is europe sold europe had a decent first quarter and therefore the ecb can stop in the next few months. i think that was a very absurd expectation and they do intend to continue qe until at least september 2016 in accordance with their original plans. there's no way they are going to react to one quarter or a couple of months of figures. >> the violent sell-off that we saw in the bond market is the opposite of what central banks given perhaps this is the new normal given the massive programs supporting the economy
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not only europe but around the world? >> there is a risk that it will go too far. the other factor of course is the role of the fed and this is something you mentioned earlier, the other big story of 2015 is going to be when does the fed move, does it move in september, december, or whatever and i think one significant factor was two weeks ago the comment that janet yellen made which was really quite bearish for the bond market. what was reported was that she referred to the valuations and equity being on the high side but that was actually a very moderate statement she made. i was actually there. she made the statement at the institute for national -- institute for new economic thinking conference in washington, and she was talking more about the bond market. she said equities are arguably somewhat overvalued but given the low level of bonds, bond yields, that's not surprising. it's bonds that could make a
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sharp jump higher in yields. strangely enough that wasn't reported at the time, but i think the implication was very much that the fed itself is expecting u.s. bond yields to go up to 2, 2.5, maybe higher and that may drag european bond yields with them. >> speaking of bonds, i want to draw your attention to what's happening in the greek debt market, we are looking at yields moving higher in today's trade. you can see the ten-year that we watch the most at 10.6%. >> this comes after greece's newspaper reported that athens was close to being unable to repay the 750 million euros due to ecb. juliette joins us on set and
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anatole stays with us. how significant was this weekend development. >> it was not telling us anything we didn't already know. it's already the stage between they have to choose between paging -- paying wages and debt repayments. it looks completely impossible for them to make at this stage but i think some of the other key take aways from that memo was the fact that the imf said the numbers don't stand up. you can't back out figures that you hope will allow them to make debt repayments. the debt sustainability doesn't work. voices suggest we need to offer them a take it or leave it. look this is what you got to do otherwise you are not going to get the cash. >> i'm going to bring in anatole as well.
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do you think the threat of a grexit is still there? >> no. the ecb is out there buying every bond that any european government wants to issue for the next year and a half apart from greece and therefore there really isn't a risk of in my view and i think in the ecb's view there isn't a serious risk of contagion from greece to the other economies, but the other -- -- obviously they would like to avoid a grexit. rather than forcing greece into grexit, into leaving the euro they are going to force greece into default and to an inability to pay not just the imf, i think it's somewhat worse than juliette suggested. it's looking like they are running out of money even for
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the internal payments even if they don't have to pay the imf. so literally the greek government is running out of money to pay its own wages, its own pensions its own public spending and at that point like cyprus, they really have to turn around and either say we're going to tighten our belts even more than we would under the austerity program or we have to do a deal with the e.u. >> a viable outcome in terms of postponing kicking the can down the road we're only talking about that. that the government is going to be able to hold together under that kind of scenario without a referendum and even then i'm not talking about a future deal and the country just doesn't have the money to make a choice now even between what they do and
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pay. >> did they have a choice a few months ago? s has a mistake has been made in these negotiations? >> yes, undoubtedly. it does look like at the end of last yeerk beginning of this year greece had a so-called primary debt surplus, which means they had a surplus excluding what they would have to pay the imf and others for debt payments. that surplus has disappeared basically the economy has collapsed again this quarter, their tax collections are down so now they don't have enough money even for their internal purposes disregarding what they have to pay to the rest of the world. >> they are not collecting tax receipts. they argued last week that they have cut spending to such an
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extent. that's just nice accounting, cash accounting rather than taking into account some of the spending they should have made. >> when you are talking about a viable solution i completely agree with juliette. further ahead than that there will have to be very significant debt rescheduling, reprofiling, write-offs, whatever you call it, there's no way that their current debt load is sustainable. >> we're going to put the pause button on greece i'm afraid julia. thanks for joining us. let's focus our attention to italy, the prime minister has told state television that a ruling requiring the government to pay an extra $2 billion euros to pensioners could throw off his big budget plans. italy says the government must pay the money in august. the european commission is due to give a formal opinion on the country's 2015 financial program
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in two weeks. now, let's get a european market update. let's have a look at european markets. relatively volatile here in europe last week. a number of factors going into that, with that of course a slightly stronger euro which has hurt european equities bouncing a little bit this week. we're up half a percent. that move in the currency meant that u.s. equities were able to do better because the dollar was weakening on the other side that factor has altered the risk asset performance either side of atlantic. today we're look at the ftse 100 up that's led hider by bhp which opened door -- down. realigning its assets before and some pension funds moving around. at the moment bhp holding the
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ftse 100 by .6. the dax is bouncing strongly up 1%. let's look at bond rates. we've had that yields where have come off of lows. we're look at 2.17% on the ten year and the u.s. retail sales, consumer data last week was disappointing. we'll be talking more about that later. look at the u.k. 1.89. just tell me perg that rise in yields that we had seen and italy 1.85. quick look at foreign rates. .7%. the yen just below 120, and the
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aussies at 0.8, bang-on on this morning. the london the stocks are grabbing the attention as i said at the top of the show. b win party entire share capital is up 7%. 888 down 47% under performing overall. aveva is up 8.5%. this according to a report in the sunday times over the weekend. the ceo of the company will join our colleagues on "squawk box" at 8:00 tomorrow. that is the best part of 3% after its biggest -- its biggest one-day drop since 2013.
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>> let's get an update on markets. >> you've talked about this in some depth. bhp, the new rerating of the company after it spun off the non-core and under performing assets into south 32 bringing the s&p sx down quite sharply. 1.3%. nikkei, we're looking at near three-week highs. insurers having a good day because we're seeing more shareholder payouts, in this case. elsewhere, shanghai composite, stumbling and that's because of a wave of new share issuance happening on tuesday. this is going to be a very important day tomorrow because
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12 companies will start to take subscriptions. that means investors will need to share existing issues in order to participate in those ipos. weak day in the hong kong market as well and under performing because the data told us that the property market remains the weak link in the broader chinese economy. that's where we stand. and coming up on "worldwide exchange," as fin tech funding continues to grow. plus finding your guiding star. apple ceo tim cook hands out some words of wisdom to graduates but what's the best advice you have ever received. we are reading your tweets outloud. who does it pay to work for? we unveil the highest paid ceos
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welcome back to "worldwide exchange." let's talk geo politics. isis has seized the iraqi city of ramadi.
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in a statement the terrorist group said the fighters had purged the entire city. let's join hadley gamble. >> some serious problems for the president. raising serious questions as to how effective they are. it all raises serious questions about the u.s. coalition. they said there's not going to be a ground force. they don't want to get in on the ground, but it's looking more and more that despite this huge aerial bombardment that it's not being as effective as they would have hoped and quite frankly that's a problem and then you also have the region hundreds of thousands refugees fleeing iraq and syria. you basically have a situation in jordan where 20% of their
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population today is made up of refugees. you've got over 81,000 refugees in this camp alone. 85% of the total refugees don't live in the camp. international aid organizations and governments don't necessarily help with the support of the refugees who are outside the camps. serious issues going on for the region. at the same point this is the region that has dealt with conflicts hundreds of thousands of years. it's not something that they are ill equipped to deal with. we spoke to his imagine -- -- majesty yesterday. what he told me this is business as usual for us and we're used to adapting and it's what we're going to do going forward. you can see more of that interview on thursday. it's first on cnbc as the world economic forum takes off in this country.
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it's a big week for jordan they have foreign ministers for iraq coming forward. thank you so much. we also want to point your attention to the oil market. what are we seeing in today's trade after the 16% moved to the up side for brent crude. it is trading at $68.48 wti crude, more prone for the u.s. trader up. george osborn will present a new budget on july 8th the second in britain this year. osborn said the emergency budget would have a "laser-like focus on raising productivity and living standards." meanwhile, the u.k.'s new conservative government is being
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challenged to bring forward the referendum. still with us is anatole. let's quickly touch on this budget we're going to get from osborn first. we've had this conservative majority. everything is looking hunky dory for the u.k. doesn't it. >> i don't think it really changes anything for the u.k. relative to how it was the last couple of years but of course that are lack of change is itself a big change. nearly everybody by myself included expected a very dramatic change right now. and it couldn't be able to carry on and push through the policies they denounced last year. i don't think anything changes very much in terms of economic
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performance. possibly not for the markets because as we now know with hindsight, the markets were sort of positioned for the outcome that emerged because there wasn't much response but i think it does change the outlook in terms of much greater stability, much greater predictability in the british economy than certainly i expected a month ago. >> do we have stability in the face of a possible brexit or is that risk overdone? >> no i don't think it's overdone. i think brexit and particularly the debate about brexit before the actual vote is a very big risk and i think that is going to be the dominant factor really for british financial markets over the year year and a half because as i say i don't think the economic fundamentals are going to change very much in relation to the way they have been over the last year. i think brexit is a big risk particularly we are dependent on
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capital inflows. i think that is one of the key thing one has to bear in mind in financial markets. >> thank you very much for joining us. as ever a pleasure. we have to leave it there. still to come on the show chinese electronic giant xiaomi make its first full push into the u.s. and european markets. should apple be on guard? that's coming up in two minutes.
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bhp makes a u-turn the the comemodityies market turns positive on the european market. hong kong gets set for its biggest ipo of the year huatai lawnchses a share offering. too close for comfort. reports suggest that greece is close to defaulting on its payment to the imp. oil, amid tension in the middle east, isis takes control of the iraqi city ramadi. and on this monday morning
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let's take a look at european equities. keep in mind stocks did end lower on the week. the german dax lowerup 2%. at ftse 100 seeing a bit of a move to the upside around .2 of a percent. not good of course for european equities specifically foes exporters that do well in a weaker environment. let's look at greek yields as we've mentioned in the headlines. we've seen yields rise because of developments over the weekend. we're looking at the 3 threer 18.3% and ten year at the moment 10.7%. one bank in focus is deutsche bank. they say they are not considering stepping down
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despite receiving criticism by investors over fines and legal problems for the bank. the duo are to face shareholders may 21st. carolyn roth joining us. one of the few banks to fail the stress test in the u.s. is a management change needed in order to see better days ahead for deutsche bank? >> i'm not quite sure it is needed. this new management team has got a lot on its plate. they want to cut the investment twanking and retail side of the business. and they want a spin-off. they really need to stay on. someone needs to stay on to drive forward this turn around and that's why jain said the best i can do is solve the problems of the bank and improve the performance and the chairman he also backed the management team. he said in an interview the top
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management will be judged by the implementation of the new strategy announced earlier this year. i think personally quite disruptive if the management team left now. even though the fine that they had to paysr $2.5 billion in a settle over the libor manipulation. that was huge of course. >> we've seen this big strategy plan for deutsche bank in order to try and turn things around but just a month ago we had goldman sachs results and they knocked the ball out of the park. how long is this turn around plan going to take for deutsche bank? >> it may take quite a long time. they have set lower targets for return on equity only 10%. some analysts are very skeptical as to whether they can reach those targets. they don't have necessarily have
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the best track record. it's quite interesting you make the comparison with goldman sachs because morgan stanley pitted the two against each other and on a number of metrics, goalldman sachs won. there's only one metric which deutsche bank won that was valuation. deutsche bank -- >> the stock is down about 30% over the past five years. it is under one of the under performers when looking at the european banking sector. >> deutsche bank wants to portray themselves as the last man standing when it comes to european banking. the threat of hsbc moving its headquarters away from the u.k. has spurred city leaders to increase efforts to water down britain banking system reforms this according to the sunday times which reports that senior figures are in behind the scenes talk with treasury official in
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an effort to weaken the so-called ring fence reforms. it would require big banks to separate their investment and retail banking divisions by 2019. the paddle in seattle. a large number of kayakers took to the waters. they call them kayak-ivists. they called around an oil rig that the british dutch plans to send north. now, switching our attention to what's happening in the currency market. the euro under pressure today as a dollar enjoys a slight rebound following a week of disappointing data state side. it has rallied more than 5% against the greenback.
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what can you expect this week? pleasure to have you on the show. what do you make of the big moves we've been seeing in the euro? they hit 714 last week. the question is can this move continue. >> i think the key, you know you would want to see the european government bond market turn around and find buyers again so we've had this very dramatic rise in bond yields everywhere but much more so in european yields. the weak data in the united states took yields lower again last week and that widened the differential between the two. now things may stabilize. monday mornings don't always give us a great cue on the week. if we get softness in the data later on in the week then i think we'll get to the point many i'm not entirely clear in my mind that we plushed out that
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huge huge number of short positions in the euro. pessimism about the euro and optimism about the u.s. at the same time. >> with the deflation threat easing does that make it harder to push it down? >> i think it's more about the united states to that extent. if we have european inflation, to run, not less in the next couple of years. if u.s. rates go to 2% and european rates stay down here we'll get euro down to parity. we've questioned both of those sides. will the u.s. ever put interest rates up? both of those have been questioned and that's given us this move. i would still expect a rate rise in the united states in september as being the most -- >> despite that retail sales number, that consumer confidence number on friday? >> i think the bar is getting
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lowered just because the second quarter growth numbers, even if the u.s. is messing around 2 and a half%, nominal gdp growth is still running 4 at the moment. that doesn't need zero rates. the question isn't our interest rates going to be very low in the united states, the question is are they ever going to go up. if you think we'll start going up and if you think the ecb staying on hold then all we need to do to clear out the positioning. i think we will move back and we'll see parity but the european side, pessimism, growth never going back that was just overdone, and we flushed out a lot of positions in bond and currency markets. >> we've seen the euro bounce back somewhat what about other european noneuro currencies, do
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you like that? >> i like that much more in fact. we've had advance in the most hated of late the turkish lira. all of these are going to benefit from the calmer european growth environment, we'll see money flow back into them. i think they are a better currency play than the euro itself. for it to be really stop falling, we need to be much closer to the end of qe. >> you mentioned sterling. >> it's rallied a long way off the election. it's very expensive. you've got a level of the currency that makes things difficult to buy. we've also got a lot of fiscal tightening coming and we've got that current account deficit in the background. >> is there a direct core alags between the direction of bund
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yields and the euro? >> i think there is now. there hasn't always been. short term u.s. interest rates have had a bigger correlation than the euro dollar than anything else. >> it's the leading indicator, would you call it that way? >> marginally leading. it doesn't lead much. they are leading together. i think you need bund yields to start coming back down as treasury yields did last week before i'm going to go out and say, yep, this correction is over. if they go down that will see the bear case return. it's a huge move in the last month and taken out all the bund bulls, but they haven't turned around yet. >> kit, thank you very much for joining us.
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now bracing for a dividend drought, dollar volatility could knock as $40 billion off dividends this year. head to our website for a full write-up of that story. russian president vladimir putin has zpeled any lingering fears over his health. putin led a team featuring former nhl legends to an 18-6 victory in an exhibition game. the president scored 8 goals himself. pretty impressive stuff there and a little bit of a fight breaking out as well. >> as you would say. i was quite impressed. it still highlighted his fight there in that final. >> there you go. moving on apple ceo tim cook is calling on new college graduates to find their college starts.
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cook gave a speech on sunday in washington. he said graduates can do good and well in the world. >> graduates, your values matter. they are your north star and work takes on new meaning when you feel you are pointed in the right direction. otherwise, it's just a job, and life is too short for that. >> so we want to hear from you on this. what advice do you have for grads or what was the best advice you received as a graduate. we've been getting your tweets throughout the morning. here are a couple one inspirational act is infinitely more value than the biggest library of inspirational advice. i like that. very wise. wilfred, do you have any advice for people out there? >> i'm interested that tim cook said otherwise it's just a job. you've got to go and choose something that you are going to enjoy because the hours you'll
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spend working are going to be the most -- most of what you are going to spend your life doing, that and sleeping. choose a job that you love and you'll never work a day in your life. that's a quote from confucius. >> is that what it feels like being on "worldwide exchange." >> it does. it does. it's not just saying i want to enjoy myself and the hours i'm working. if you want to excel at something, you got to do something you enjoy. how about you? >> i actually found a couple of quotes that. the truth is life is messy and people get hurt. the difference between those who overcome challenges and those who succumb to them is largely one of attitude and perspective. you can't let the down moments get to you. you got to per severe fight on for days ahead. >> i also one quote for my father. it's ultimately never waste a second and we have a duty to make the most of the attributes
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the opportunities that we're given. never waste a second and always work hard. >> great advice absolutely. keep your quotes coming in to us. we'll get them on "worldwide exchange." and still to come on the show french luxury giant kering steps up with alibaba to do away with counterfits once and more fall. more after this break.
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kerring, the french parent company are suing alibaba for allegedly allowing fake goods to be sold on their website. >> good morning, wilfred. i actually have a question for seema because she might like purses than you do. what if you are offered a gucci hand bag and you could have it for $5. >> i would always buy one that's real. i don't like fake goods. when you see some of those guys selling the fake goods on the side of the street. i don't want to be caught with a fake hand bag. that would ruin my reputation. >> i tell you what i would do -- >> it would be a fake one. >> i would buy it i would wrap
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it up and give it to seema as a present. >> that's just me. only the real stuff for me. >> no seema deserves the real one. that's the problem actually because the owner of gucci sued alibaba for putting on line fake products. it's the second time that the french luxury group sold alibaba. the time for kering to work on a direct resolution with alibaba. obviously the discussions failed, and gucci, yves laurent filed another suit against alibaba carrying claims that the chinese website conspired to sell counterfeit products. last year, lmvh reached a
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settlement with ebay to tackle the sell of counterfeit products on line. the details were not made public but it came after ebay was sentenced by a french court to pay $ -- 5.7 million euros in damages, a sentence that was later canceled and that was also the reason for the settlement follow that -- we have to follow that story because obviously it's probably not the end of the issue, that counterfeit products have been a long time for french companies but, of course with these platforms on line it's even easier to sell and buy them. >> thank you very much for that. i'll be checking out the cheaper options i can find for seem''s christmas present. the average price of a new home in china fell for the eighth straight month in april, down 6.1% over the same month
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last year. prices were flat providing some hope that the measuring has turned a corner. still, some analysts are warning that the property secretary ser a risk to china. china's tech heavy shenzhen leads in stocks. >> china's largest brokerage has launched a share offering worth 5.2 billion dollars in hong kong in a bid to raise funds. joining us now from hong kong. peter, thank you very much for joining us. good morning to you from here. good afternoon where you are. we've seen this extraordinary rise in chinese mainland stock over the last six months or so and a huge amount of ipos
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boosting measuring capitalization significantly. where is all the money coming from? >> well, i think actually one of the clues to where the money is coming from is from your earlier segment. it's coming partly from the property market. fire long time the thing the asset that was speculated most was the property market. we're obviously seeing some weakness in the market there and one of the things that's probably happening is people are saying is property is no longer going up. this is no longer such a good place for my money. where can i get a return? i can't get a return on the bank. i'm going to play the stock market. that's been fueling itself now. one of the other things that's happened in the last couple of years that china has allowed trading on margin and that has fueled a big increase in trading volumes in the chinese stock markets. >> a wave of ipos hitting the market in the next couple of
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years, many will say this will soak the liquidity in the chinese market. if this perhaps a time to sell? >> i don't know. i think it's trying to call the top open the chinese measuring or link it to what's going on in the bradder economy has always been difficult. the stock market has almost indicated contrary to where the overall economy is going. you have to wonder how this leverage driven boom can go if you look at the amount of stocks in china that are actually available, the free float are, rather than the overall capitalization of the market if you look at the free margin lending, as a proportion of the free float it's probably three times what it is in the u.s. you have to wonder how much further that can go and also what kind of effect it would have on the market if share prices were to come down and if some of that margin-driven
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trading were to unwind. >> let's talk a little bit more about the fundamental economy. we've seen some poor lending data in the last week or so. is that worrying to authorities? >> yeah that's one of the big worries. i mean, clearly there's been a slowdown. there's no question about that and the slow down that's probably gone further than the authorities would like which is why you've seen some of these measures to try and stimulate the economy, loosening up conditions in the banking sector and also most recently telling banks to keep lending local government projects and not foreclose on them. but clearly there's some nervous nervousness in the banks. this is one of the paradoxes in china. on the one hand authorities are trying to make the market have more influence basically to try and direct correct in a more
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market driven way. dhoent want the consequences of some of the that market driven behavior which would be to stop lending to people and put them in default or bankruptcy. there's a big management game going on trying to direct lending, trying to make sure liquidity is getting to the markets that need it. >> stick with us because we're going to talk about zi -- xiaomi now. pete, i want to bring you in on this. they have had great traction in china xiaomi by under cutting samsung and apple in price. do you think they can get traction with the rest of the
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world? >> it's incredibly strong in chs china and they were until the iphone 6 came along, they were the number-one selling phone in china. i think they have a particular business model which basically involves producing phones that shall we say look a lot like phones out there on the market and cost less and also by creating demand by having these on line flash sells and not spending a lot of money on marketing and retailing. that might work some where else. they are trying to push that into india. i hear that there are quite a lot of xiaomi phones knocking around in india. people have higher expectations in the u.s. there's also indication that if xiaomi tries to operate in those markets, it's more likely that some of their more established competitors in the west might seek also to pursue them for
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intellectual purposes. you may see some patent lawsuits and stuff. that may be one reason why they have been quite cautious in trying to establish their name in the west without actually selling those phones. >> it will be interesting to see. peter, stick with us. you are actually leaving us. thank you for join us ing. >> india prime minister nahendra modei told executives in shanghai that he was key to develop seconders where china belongs. he added the century belongs to asia. there is no bilateral relationship that is more complicated between the one india and china.
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this is clearly a sign of the two countries trying to warm up to each other. >> and one sign of them having warmed up together was this great tweet that modi sent out. a selfie of him and premier li. it's obviously these discussions went very well. look at that. a nice sign. >> do you think this is politically moefted? >> i have no doubt it is nonetheless i like it. i think it's time to take a quick break. >> we'll be tweeting during the break. follow us on twitter. >> coming up on "worldwide exchange," be wear of the stronger greenback. real risks to the u.s. economy. that's coming up.
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. hello, everyone. you are watching "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. >> the dollar bounces back slightly as u.s. future point to a mixed option following a record high for the s&p 500. >> aveva rallies on the european market. oil extending a nine-week gain amid increased tensions in the middle east. isis takes full control of the iraqi city of ramadi while saudi arabia resumes strikes against
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houthi rebels. a deadly shoot-out between rival biker gangs in waco texas. welcome, everybody, to the show. the stock market undeterred by bond yields. take a look at friday. the dow ending higher 18,272. the sawp s&p 500 that's really what stole the spotlight. closing at record high at 2122. stocks were down significantly. stock traders coming back in on friday on the back of that weaker than expected economic data suggesting that if the feds timetable will move back a bit perhaps now to december or even 2016 after that weaker than
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expected consumer confidence number, but what can we expect this week? take a look at futures on your screen. the dow indicating a higher open implied open of 12 points. the nasdaq interestingly enough not following suit. the dow markets s&p just up fractionally today. european markets on the other hand, take a look at what we're seeing across the board here. the dax holding on to a triple digit gain. keep in mind last week it was the under performer. it lost 2.5% on the back of weak economic data and plus again that implied volatility in the european bond market. investors were trying to figure out what that meant. a quick look at the ftse 100, you can see just below 7,000 but a gain of around half of a percent.
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now, some stock-specific news to get to you. aveva at the top of the european market amid speculation with buyers looking to buy it for $1 million ponds. the ceo of aveva will join our colleagues on "squawk box." you can see it's up about 12%. let's also have a look at bond markets. of course we've seen seen that significant rise in bond yields particularly in europe over the last few weeks, but that rise in yields has just pawds for breath over the last couple of trading sessions, including today. the ten-year in germany, .62%. similar kind of moves we've seen
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in the u.s. we're looking at 2.17%. it had been a little bit bit more elevated than that. part of that reason of course as well was that we had weaker data out of the u.s. the back end on the retail and consumer side. let's look at come identities because the oil prices managed to rally a little bit further over the last week or so really because the u.s. dollar had been weaker. in fact the u.s. dollar has bounced back a bit today but nonetheless the oil price has managed to rally, this because of geopolitical concerns ongoing fight between isis rebels and iraq. as we look today, we've got wti up .4. brent .4%. the u.s. dollar which has been weakening over the last month or so managing to bounce back a little bit today, particularly in the currency pair where we've seen the most aggressive action.
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it's given up 0.6% today, it's 113.84. if we're looking at the yen, and the aussie dollar. joining us now to discuss the u.s. markets is mark zandy. we've been getting comments from fed chief charles evans who says the fomc could be looking at a rate hike in june. quite interesting who is from charles evans who is typically quite the dove and last time i interviewed him here in london he said we won't expect a rate hike until 2016. what do you make of these comments? is june still on the table given the mixed economic data that we've been seeing in the u.s.? >> did he say why he changed his mind? >> he said if feds confidence in the economy could be imagine the case for a june rate hike.
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>> you can make a case perhaps, they will probably make until september and maybe december. you have to have consistent growth and wage growth that is clearly accelerating. this is a bit of a parlor game. june, september, december. from a macroeconomic perspective. >> we've been trying to understand how to reprice inflationary expectations. what are you forecasting? >> for inflation? >> yes. >> i don't think we have an inflation problem for a while. i mean in the u.s., the core inflation rate is about 1.5%. probably see -- we get back to target at 2% maybe a year and a year and a half from now. if you tell me we had insnrags above target 2 to 3 now's from now. i don't think i would be argue with you. for the foreseeable future i don't think inflation is an
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issue. >> to what extent will markets be relieved that the u.s. dollar come back from its extraordinary run it has, is that an important factor for the markets and economy? >> yeah. i think multinationals are getting awfully nervous with this sharp appreciation. i mean all the trend lines look like we were going to pair pretty quickly. i think the stability around 110, 115 makes them feel a bit better. i don't think they should feel too comfortable those because i think we're eventually going to parity. >> in general over the last month or so let's say, it feels a very significant risk-off sentiment. u.s. equities on the other hand have managed to hit all-time heads. is that a false headline though? do you think there's real fundamental bullishness in the u.s. market? >> i think so.
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corporate earnings are at record highs. you have low inflation. i think prospects are good so yeah i think there's fundamental reasons to be optimistic about u.s. equities. having said that i think they are on the high side of fair value in part because of what the federal reserve has done with regard to qe. it has kept long term rates down and that juices up equity prices. there is good fundamental reasons for the high equity prices but they are probably a little bit juiced because of the monetary policy. i've been looking at the housing data and i'm still perplexed as to why this measuring has cooled down. ultra low mortgage rates are rising consumer confidence. this should be a recipe for success for the housing sector. it's not. what gives? >> i've been disappointed as well. i expected the housing recovery in the u.s. to be a lot better. all the ingredients are there. we've got a lot of jobs.
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wage growth feels like it's starting to pick up. you've got mortgage rates as low as they get. the one missing inkreent has been the availability of credit to first time home buyers. that's a vestige of the collapsing homing -- housing values. particularly the biggest lenders. and they have been very reticent for a lot of reasons. i have been disappointed by the way things are going in housing. >> in the meantime the renting measuring has been doing exceptionally. >> booming. vacancy rates are coming in and rents are rising rapidly. >> a pleasure to have you on here. as we were just talking about, that dollar volatility and one report suggesting it may knock as much as $40 billion off
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company dividends this year that's according to henderson global investors and a full write-up is available on cnbc.com. let's get you a run down on what to watch this trading day. the earnings calendar picks up later this week with several big retailers reporting results. today, we heard from agi lent urban outfitters and take 2. isis has seized the rauki ramadi. the fighters had purged the entire city. let's get out to hadley gamble who joins us down the line from a camp in jordan with the latest on this story. >> reporter: it's a serious blow for the prime minister of iraq particularly for the iraqi security forces, it's raising several questions. one of which is how competent
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are the iraqi security forces? we've seen the iraqis looking for weapons deems not just from the americans but also from the french. the bigger question is u.s. and arab coalition fighters how effective are these air strikes? you've heard from everyone involved, no one wants to put boots on the ground. it's quite clear by the gains that the islamic state has made particularly over the last couple of days that air strikes are not necessarily the best way going toward to eradicate this threat. we're in jordan today, we're talking about the knock-on effect of these crisis on the region we spoke yesterday with king abdullah of jordan. we were talking about this refugee crisis that jordan has been taking on for the last couple of years. at the moment they have over 600,000 refugees in this country. it's stimed 1.4 million people in this country. only 20% of the refugees are actually in camps.
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85% of them are actually you know, living and working in jordan and it's definitely a strain on the jordanian economy and jordan also has other challenges. they have a water problem. they are an importer of energy. they are trying to reboot their economy and talking about ways they can stabilize and work throughout this crisis. in terms of the aid they get, only get international aid for the refugees that are actually in the camps. not for the hundreds of thousands that are living in jordan today. it's a serious train on their economy. scbror dan in terms of talking of rebooting the economy and renewable and opportunities, you also have big names like the foreign minister of iraq and egypt and jordan as well, everyone meeting here at the dead sea trying to talk about a way forward because obviously you have instability that's going to add to the broader instability we're seeing in the
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region. >> hadley thank you very much for that. let's have a quick look at oil prices we've been seeing a little bit of strength today. up about .6%. interestingly, goldman sachs has altered its oil prices. it says sees brent average price at 58 up from 52. that is his 2015 forecast. only about a week ago it did cut its longer term forecast. just slightly confusing message out of goldman's there. they are just increasing their forecast for this year after a week or ten days ago lowered their forecast for the longer term. is it one number that determines the fate of the world's economy it is oil. yes, we've come back. we're up about 17% for brent crude. do you think we'll get back to
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100 or 115? >> we will at some point. interesting that you say the one main figure. >> i think it's important but nothing compared to the interest rate that the fed is setting. >> that interest rate forecast is based on inflanary expectations which is driven by the price of oil and gas prices. >> fractionally by the price of oil. >> a big component. >> alast, we're being rapid by a director. tim cook lending some advice to the graduating class of 2015 plus the apple ce ox has this friendly public service announcement. >> they asked me to make a standard announcement. you've heard this before. about silencing your phones. so those of you with an iphone, just place it in silent mode. if you don't have an iphone, please pass it to the center
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aisle. apple as a world class recycling program. it's more than a network. it's how you stay connected. with centurylink as your trusted technology partner you get an industry leading broadband network and cloud and hosting services. centurylink. your link to what's next. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely.
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ibm watson is working to make healthcare smarter every day.
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the headlines, the greenback on the rebound. this as chicago fed president suggests a june rate hike is still on the table. oil extends a nine-week gain as isis takes control of the iraqi
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city of ramadi and nine people are dead following a shoot-out between rival biker gangs in waco texas. welcome back. apple ceo tim cook is calling on you, college grads to find their guiding stars. he gave the commencement address at george washington university. he says graduates can do well. >> graduates, your values matter. they are your north star and work take on new meaning when you feel you are pointed in the right direction. otherwise, it's just a job. and life is too short for that. >> all right. we want to hear from you on this monday morning. what advice have you -- do you have for grads or what was the best advice that you have ever received as a graduate? you can tweet us here on
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"worldwide exchange." in fact, one says mine says always be professional and true to your values. that is good advice. here's what sheryl sandberg said recently. if you are offered a seat on a rocket ship don't ask about what seat just get on. >> i agree. i will love to go to space. that would be pretty epic. >> she's symbolizing the seat if you are asked to be a part -- i'm happy to explain. >> the other one, someone had told me if you are going into the world of finance and business, you need a little bit of expert advice. >> don't follow the money. >> watch cnbc. >> that would have been epic advice. >> that would have been great. >> now clearly when you are on the tube when you are in south kensington, you definitely tell people. >> i would say pick something that you are passionate about and then your enthusiasm and your drive, your commitment will shine through. >> i actually agree with you. you have to wake up in the morning getting excited to go to
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work. otherwise it's seen as a drag. >> i'm passionate about presenting alongside seem' mody. >> absolutely. i wish i could say the same. it's always a pleasure working with mr. frost. >> get in touch with us. what's the best advice you've been given as a graduate when you are leaving university? now moving on acapella singing is more popular than superheros. "pitch perfect 2 earned more than $70 million in the first weekend. well above its $29 million budget. seema has been trying to get me to see that film. fury road came in second. it has $150 budget. avengers was third with nearly $39 million. it's made 1.1 billion world wide. coming up more money, more problems. we are going to discuss hillary
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clinton's campaign finances. that story coming up after this break.
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can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?
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welcome back. nine people have died and more than 100 are under arrest following a deadly shoot-out between rival biker gangs in waco, texas.
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we have more on that story. jay, over to you. >> reporter: hey there, and seema still locked down by police as well as state officers and federal agents who are on the scene here. it was an all-out turf war against five outlaw rival biker bangs. started out as a fistfight. there were multiple gunshots here. officers grabbing as many as 100 weapons from guns to knives to clubs to chains. when it was all said and done nine people were killed. at least 18 injured, and this area is still locked down because there's a very real concern that more of these outlaw biker gangs could be on the way. that more members could come into town. overnight, at least 100 detained, taken into custody as they try and shake out how this happened, why it happened and
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try to prepare for what comes next, guys. >> jay, thank you for the latest. amtrak plans to restore full service on the northeast corridor line today following last week's deadly derailment in philadelphia. repairs have been made. investigators are still trying to determine why the train sped up sharply right before the crash. boeing is threatening to move overseas. the bank finances purchases by foreign customers. conservative lawmakers want to shut it down which they describe as corporate welfare. they say they need to compete with foreign rivals. let's take a look at u.s. futures. i want to point out that the earnings season in the u.s. is wrapping up. the s&p 500 is now on track to deliver income growth of 0.4% in
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the first quarter compared with the initial projections of a 5.8% decline as of march. so overall, big take away earning have come in better than expected. the dollar not as big of a head wind as we were expecting and a dow indicating a higher open. >> coming in on better than expected. amid lower expectations. the s&p we had a all time high is bit surprising. it isn't resounding and still i can't believe we're at record highs. >> it all comes down to that looming rate hike. the expectation being pushed back, that means investors are saying equities can still rise. let's have a look at what european markets are doing so far. in general, they are in the green as you can see. the dax up 0.8% u.k. and french equities up just above flat. italy is the lagard today.
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quick look the euro soft allowing equities a little bit. 113.83. we've got sterling at 156.62. the aussie dollar is just around 0.8 at the moment. do we have a second to look at bonds? we'll get that to you at the other side of the break. in the meantime, fin tech funding continues to grow in london. we'll discuss that coming up after this break. ♪ building aircraft, the likes of which the world has never seen. this is what we do.
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♪ that's the value of performance. northrop grumman.
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now it's easier than ever to manage your account. get started at xfinity.com/myaccount it's 5:30 a.m. in new york 10:30 here in london. good morning, everyone. you are watching "worldwide exchange." >> the greenback fights back. the dollar rebounding after five straight weeks in the red this as chicago fed president charles evans leaves the door open to a june rate hike. >> and aveva shares rally amid speculation of a bid being prepared for the software firm. >> coherent navigation bought for an undisclosed amount. oil extends a nine-week gain
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amid tensions in the middle east. isis takes control of ramadi. if you are just tuning in thank you so much for joining us here on "worldwide exchange." take a look at u.s. futures. here is what we're expecting when wall street opens for trade. the dow indicating a move by 4 points. not the same case for nasdaq pointing to a lower open. traders have been looking at the bond market sell-off and wondering whether a stock market sell-off could be next. at this time that doesn't appear to be the case. remember, this month, this is when we typically see investors sell in may and go away but that theory not holding true this year at least, although we're still halfway through the month. taking a look at the euro dollar
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trade. the big story has been the weakness in the dollar over the past couple of weeks, but we are now seeing the dollar strengthen against a basket of the currencies. taking a look at the euro dollar trade, we are looking at the euro at 113 against the u.s. dollar. remember, last week the euro hit a high of 114, which was one of reasons we saw european equities under perform because a weak currency environment, that is when european equities specifically those exporters potentially typically out perform i should say euro dollar right now at 113, 75 against the dollar. >> thanks very much, seema. let's move on and have a look at some other stories. apple has bought a gps start-up firm called coherent navigation for an undisclosed amount. the executives are joining apple's maps team. twice as many iphone users try
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to get directions from google maps. let's have a look at apple. it's up 0.7% in frankfurt trade today. google will launch buy button on its search results in the next couple of weeks. a step to coming to an online market place like amazon and ebay. google taking a look at price action in shares. google, there we go in frankfurt trading down by .6%. investment in technology in the u.k. rose to 2014 much of it came due to technology. join is now is christo carmen.
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good morning to you. thank you very much for joining us. let's talk about this peer-to-peer currency transfer business which are one of the leaders in. what exactly is your defensible market position? you are offering lower rates but surely the banks can fight back and cut their rates as well? >> they could and they should but they don't. we use a totally different approach in technology. we kind of figured out how to move money between different countries without paying to the banks. so we actually have people in both sides of the transfer. when you send euros to the u.s. for example, we use the money that we collect in the u.s. from our u.s. customers to pay out. therefore, we cut out the entire complexity and inefficiency that the banking sector puts into this market. >> demand for online payments is exploding but consumers still want security. what are you doing to ensure
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customer's data is safe and secure? >> as you see, technology start-ups are actually very good at keeping their customer data safe and we've kind of built up on the premise that we do this for the customers, not for anyone else it's the utmost priority. >> you are seen one of the leaders in the space here in london reaching a $1 billion valuation is seen as an elusive target for many starts-ups. >> there's a different number that we hold very high and we're really proud of so we're proud of saving about $200 million in bank fees for our customers. so we're not kind of setting our targets in terms of valuations. we actually look at the size of the problem that we're solving, so the problem is like $500 billion on the banks pocket in currency exchange and knowing that we're already $200 million
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there, there's still like $499 billion to go. we're kind of looking at what's the problem we're solving and how much we put back into your customer's pockets. >> it's a nice marketing pitch. let's talk about another part of the business. >> it's interesting. we've never built a business product per se but we found people who use transfer wise for their personal transfers, they realize they can save for their businesses as well. like with skype, they took us to their workplace and we're trying to make life easier for small business executives so -- and accountants so rather than using two different products they can use a combined service with zero. >> is by the coin a friend or a foe to your business? >> it's very much a friend. there's something very interesting in the block chain,
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in the technology. unfortunately, i think there's quite a bit to go before kind of the world figures out how to use bit coin effectively. >> thank you so much for joining us. you can read more about the cnbc disrupter 50 companies. presidential hopeful hillary clinton and her husband bill earn more than $30 million over the last 16 months mainly from speaking engagements, according to a new government filing. that figure puts the power couple in the topo.1% of all americans. the filing also reveals that mrs. clinton took in more than $5 million alone for her 2015 book "hard choices." what do you think about this seema? i have no problem with people who have been politicians then making money in the private sector whether it's by speeches, writing books, sitting on boards, so on anding for, if they are still involved in
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politics, then it becomes more of a gray area? >> i think the skeptics are more focused on whether clinton's wealth makes her out of touch with real life especially as she's looking to be the next president of the united states. that's the larger concern with this. >> i think that's a fair concern but she can still beat that. she can still get past it. here in the u.k. anyway, tony blair gets a lot of heat because he's making a lot of money in the private sector. as far as i'm concern that's up to him if he wants to do that. he's done his public service. it does seem to cause a lot of iraq to -- irk when that happened. >> it's amazing how much money the u.s. candidates raise compared to the candidates here. >> way more is spent on u.s. elections. i don't know the exact figures. >> $4 billion was spent on the u.s. mid term election. things could be very different for the presidential. let's see what happens. >> we're already focus ds on the presidential election.
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>> it seems like it's happening tomorrow. the way we're covering. who does it pay to work for. we'll unveil the ten highest paid ceos in the us. stay right there. we're coming back in two minutes.
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check out shares of netflix
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topping $600 for the first time ever on reports the company is expanding into china. making the trade of the day. keep in mind it's the best performing stock on the nasdaq 100. wilfred 80% just this year. >> wow. the ceo deserves his pay, right? how much does he get? >> i have no idea. >> we might find out because it's at the moment a good time to be king of the boardroom. results of a new study on ceo pay shows companies are still bestoeg big compensation packages to their top ceo. >> "new york times" published the annual study of the 200 top paid executive ceos vem the list tracks company with a market cap of more than $1 billion that filed annual proxies by april
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1st. on average, they earned $22.6 million last year. many pay packages were made up largely of stock and options grants. at the top, discovery communications ceo david zaslav made $156 million in 2014 after signing a new multiyear contract. discovery stock was down last year but he's routinely paid more than his peers. since 2007 tsh 2011 he had taken home more than 290 million in total compensation. michael fries of liberty, mario gabelli, sattya nadella and nick woodman. several other tech ceo's made the list. it's unclear whether he will
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draw a huge salary in his new role as executive chairman. companies are defending the huge pay packages many are tied to performance. most of that is a one-time stock grant that vests over receiver years. ken griffin who runs citadel made 1.3 billion. blackstone's ce ox made. some extraordinary numbers there. in a bit of a bull market. >> it remains to be seen. we did close out a record high on friday. >> we're going to break. the greenback on the rebound.
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this as chicago president charles evans stays a june rate hike is still on hold. and a shoot out in waco texas between rival about biker gangs. uild it in classrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats and serving america's veterans. every day, thousands of boeing volunteers help make their communities the best they can be. building something better for all of us.
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it's more than the cloud. it's multi-layered security and flexibility. with centurylink you get advanced technology solutions. including cloud and hosting services - all from a trusted it partner. centurylink. your link to what's next. welcome back. nine people are dead and more than 100 are under arrest following a deadly shoot-out between rival biker gangs in waco texas, nbc's jay gray joins us live with more on that story. jay. >> reporter: hey there, seema and this area still lock down by local state police as well as federal agents. take a look behind me. it happened at this restaurant just after noon. busy restaurant and shopping
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area here when a brawl inside one of the restrooms spilled out into the bar and then into the parking lot as you talk about. nine people killed in the gunfire. all of those believed to be gang members. 18 others injured and police say there's concerns more of those gang members could be on the way. they say that they are continuing to keep a close watch and overnight, arrested people on the outskirts of town that they believe are associated with these rival motorcycle gangs. most of those facing some type of weapons charge at this point. it seems that it was a turf war and also a recruiting battle that really exploded here in the hours around lunchtime yesterday. seema, wilfred, back to you. >> thank you so much for that update. let's focus back on markets. a government spokesperson says the government still aims to make all payments when asked about the june 5th imp payments
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that are due this of course is coming out over slightly elevated fears over greece over the weekend. let's have a look on european markets. greek fears aren't doing too much to dampen the optimism. we're mainly in the green today. that's predominantly a little bit of a bounceback from last week. fits up .4% and dax is up.8%. and slightly disappointing data out of germany. u.s. consumer confidence and weak factory output led investors believe a rate hike could come later rather than
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sooner. let's get you a run down of what to watch this trading day. the monthly market sentiment survey from the national association of home builders is out at 10:00 a.m. eastern. the earning calendar picks up later this week with several big retailers reporting results. we hear today from agilent, take two interactive and urban outfitters. >> mike i hope you had a good week. investors are waking up trying to figure out to make money this morning and the s&p 500 at a record high where do you put money to work? >> well, i have noticed at least due to the weakness in the dollar, we've seen some really nice rallies or the beginning of rallies and precious metals particularly gold and silver. i think that continues. i think the weakness in the dollar is going to continue to be a tone and these rallies that we're getting now in crude oil specifically off of some of the
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global political news overseas is really helping the market also. where to put your money, it looks like come identities are in break out stages. >> what about bond markets? >> it's very healthy for the market without question to see these types of spikes and yields and then pullbacks because really the growth is not warranted yet to see higher rates but again the impetuses of the market continuously is three to six months out to forecast that that's why we're starting to see yields above 2 1/4 in the u.s. the problem is any stat that we see coming out in the next couple of weeks that's growth-related looks to be slightly anemic to clearly disappointing. >> michael, did you say it's healthy to see the type of volatility in the bond market? surely the opposite is true. >> absolutely.
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the vix is a great barometer for the stock market right now. the tight narrow of neurodollars, have been so quiet i think that the volatility is what the market needed at least to forecast higher rates in the near term. so yes, absolutely warranted. >> do you think, therefore, that bonds are now attractive given that we've seen yields rise again? would you be getting into the u.s. ten-year? >> i think bonds will be attractive the next quarter and that's what my point is we're at the beginning of this breakout. regardless of the fed starts to come in here in the third, fourth, and the first quarter of next year which is probably the latter, the bond market is going to anticipate this. that's one of reasons you are going to see bond investors get off their hands and really looking at the markets getting attractive. when you see anything north of 250 in the ten-year then all of a sudden it becomes a whole different story. >> in this difficult market
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condition, will investors rethink their fixed income strategy given the moves we've seen in the bond market in the past couple of weeks? >> no no they won't. it will be about a year before you really see that huge influx into that market but again take a look at the s&p on a two-year chart and make it a weekly and look at the linear nature of every moving average and the market itself. that is clearly indicative of what the fed is doing and it's one of scariest charts i've seen in decades to be honest with you because markets do not move in that fashion, that's one of the reasons i think bonds are going to be a huge recipient of that move when that break-out happens. again, is it here no not yet. i do like the average of the s&p down below it. 20-24, those levels are still healthy numbers. >> that was my next question. do you think there's enough liquidity in the market to send a treasury market to 10% by the end of this year? >> no not this year no.
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>> michael, we're going to leave it out there. we're running out of time. thank you very much for joining us. now, we just heard michael saying that come mod its could be a good place to be at the moment. goldman sachs have released their latest forecast for the oil price. they will agree in fact in terms of a 2015 outlook as we've reported earlier. they have increased their 2015 average prices, brent going from 52 to 58 in their fraxt. however, longer out, theven cutting their forecast. they say for 2017 brent, forecast, is 65 down from 70 and that 2019 forecast for brent is at 60 now down from 70 dollars. as you can see currently trading brent at 67 slightly up today and wti up up today. >> big picture here brent crude up now up 16.7% year-to-date.
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i want to draw your attention to what we're seeing in the europe peep equity market. we were up triple digits an hour ago. perhaps it's the greece headlines, the dax now coming off the highs of the day trading at 11,500 up just 45 points. the cac 40 has turned a negative down about 8 points. you can see the athens ase down about 1.7%. off back of a speech by tim cook over the weekend to graduates, we've been asking you what advice do you have for graduates or what's the best advice that you yourself have received? quite a lot of tweets. says don't do what congress does. instead, use some of every dollar you earn to pay off your debt. that's rather a good piece of advice. it should be lived to central bankers around the world. and in this world, you are either a slave or a master.
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know what you are and chag it for the better. there we go. a couple of other ones don't sweat the small stuff. larry smith says have fun in your 20s which i think is good advice. you and i can relate to that. >> i've only got a couple of more months to be to have fun in our 20s. we'll be watching those tweets even after the show ends. as we come to the end of the show european equities just about still holding on to gains. more really just because really of a bounce of a weak bit of trade over the last week or two. we've got the dax up around half a percent. in the u.s. s&p 500 closing at a record high. what will expect right now, futures indicating a mixed open. let's see. it could be an interesting day on wall street. thank you so much for joining us on "worldwide exchange." we will see you tomorrow. xxxx
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. good morning. the fed still a big part of our life this morning. a top monetary policy maker argues the central bank should try to boost inflation by keeping rates near zero. and nothing like the real thing. top luxury brands are suing alibaba over counterfeit goods saying the chinese ecommerce giant knowingly made it possible to sell fakes. and a developing story, government officials are now investigating whether a computer hacker was really able to take over a plane and cause it to bank sideways. it is monday may 18th 2015 and "squawk box" begins right
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now. ♪ ♪ good morning, everybody. and welcome to "squawk box" here on cnbc. i'm becky quick, along with joe kernen and andrew ross sorkin. we're starting today with taylor swift takes away awards in top artist, top female artist and top billboard album and it's all about her bad blood video. it debuted last night's shows. it includes everyone from selena gomez and cindy crawford. take a look as what's been happening at u.s. equity futures this hour. you can

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